Ensuring Optimal Project Performance, Minister of Energy and Mineral Resources Conducts On-Site Observation of Balikpapan RDMP Project
Balikpapan, August 12, 2024 - Minister of Energy and Mineral Resources, Arifin Tasrif, conducted an on-site visit to the Balikpapan Refinery Development Master Plan (RDMP) to inspect the project's progress directly. During the visit, Arifin ensured that this project, part of the National Strategic Projects, runs optimally.
Arifin also had the opportunity to view the completed production units within the project, including the Crude Distillation Unit (CDU) IV. The CDU IV completion has made Balikpapan Refinery the largest production capacity refinery owned by Pertamina.
In his directive, Arifin emphasized the significance of anticipating any potential challenges ahead.
"We are evaluating and highlighting the crucial issues we must face in the future. What are the difficulties, what are our capabilities, and how can we overcome them so that targets can be achieved in the best possible way," he said.
During the visit, Arifin also reviewed various significant milestones achieved by the Balikpapan RDMP project. These milestones include the initial firing of Gas Turbine Generators A and C, the commissioning of the Utility Cooling Water System, and the completion of the SPM Lawe-Lawe installation.
"These steps are an essential part of preparing for the refinery's full operation in 2025," Arifin explained.
To support the Balikpapan Refinery's operations, there are also two other important projects: a 78 km gas pipeline construction from Senipah to Balikpapan and the expansion of the oil terminal capacity at Lawe-Lawe.
The gas pipeline from Senipah to Balikpapan completion has a strategic function, according to Arifin. "This pipeline will support a stable energy supply for refinery operations, with a maximum gas capacity of 125 MMSCFD," Arifin stated.
Meanwhile, the Lawe-Lawe terminal will become vital in the crude oil supply chain, ensuring raw materials delivery to the Balikpapan Refinery. This project includes two crude oil storage tanks construction with a capacity of 1,000,000 barrels each, facilities for receiving crude oil from tankers via a 320,000 DWT Single Point Mooring (SPM), and the onshore and offshore pipeline facilities development from the SPM to the Lawe-Lawe Terminal.
"The additional production capacity from the Balikpapan Refinery is expected to further strengthen Indonesia's energy security," said Arifin.
Meanwhile, the President Director of PT Kilang Pertamina Internasional (KPI), Taufik Aditiyawarman, explained the Balikpapan RDMP project objectives. In addition to increasing processing capacity to 360,000 barrels per day, the project aims to improve product quality and refinery complexity.
"The Balikpapan Refinery previously had a processing capacity of 260,000 barrels per day. Through the Balikpapan RDMP project, the processing capacity has increased by 100,000 barrels per day. The revamped CDU IV unit is now operating normally and producing fuel," explained Taufik.
"The technology developed at the Balikpapan Refinery now enables fuel with Euro 5 quality production, compared to the previous Euro 2 standard," Taufik added.
Regarding the refinery's complexity, Taufik explained that the indicator used in the oil and gas processing industry is known as the Nelson Complexity Index (NCI). "After the RDMP project is fully completed in 2025, the NCI of the Balikpapan Refinery will increase to 8. This means that the Balikpapan Refinery will have the capability to produce various product variants," said Taufik.
In addition to being the largest investment project currently owned by Pertamina, the Balikpapan RDMP Project also represents a form of synergy within the Pertamina Group. To support the Balikpapan Refinery’s gas needs, the Gas sub-holding of Pertamina has completed the 78 km Senipah-Balikpapan pipeline construction. On the downstream side, the Commercial & Trading (C&T) sub-holding has also built the Tanjung Batu fuel terminal, which has a 125,000 KL storage capacity.
"The Senipah-Balikpapan gas pipeline completion will certainly ensure gas supply for the Balikpapan Refinery operations. At the downstream, C&T is also ready to store the refined products before distributing them to customers," Taufik concluded.
The Vice President of Corporate Communication of PT Pertamina (Persero), Fadjar Djoko Santoso, added that the Balikpapan RDMP is a Pertamina program aimed at strengthening national energy security. This refinery will support the increased production of high-quality energy and petrochemicals to fulfill the public’s growing needs.
"We appreciate the Balikpapan RDMP construction’s progress, as well as other supporting infrastructure. As the newest refinery, it is expected to operate optimally and support Pertamina's energy security targets," Fadjar explained.
KPI is a subsidiary of Pertamina that conducts its main business in oil and petrochemical processing according to ESG (Environmental, Social & Governance) principles. KPI is also registered with the United Nations Global Compact (UNGC) and is committed to the Ten Universal Principles of the UNGC in its operational strategy as part of its ESG implementation. KPI will continue to run its business professionally to achieve its vision of becoming a world-class oil refinery and petrochemical company with environmental awareness, social responsibility, and good corporate governance.
Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**